Friday, August 17, 2012

Found very amusing Extracts From Report of Committee of International Tax Conference in 1908. It's all about how to tax life insurance companies:

It must be admitted that there is no one scientific system of taxing life insurance companies; whatever is adopted must be simple and easy and certain of calculation. The legislative mind must not be confused by technical side issues.

A license fee or tax measured by premium receipts received in the state meets this desired requirement and bases the contributions of life insurance companies to governmental support on the amount of business transacted with policyholders in the several taxing jurisdictions.

Concerning the rate your committee is of the opinion that the imposition of a tax of 1 percentum of domestic premium receipts upon all companies engaged in the business of life insurance would result in substantial and sufficient revenue to the several states and be an ample requirement from the companies.

The fee should be uniform, and apply alike to domestic and foreign companies.

Under existing laws the basis of domestic premium receipts is generally recognized, but the rates vary materially, resulting in manifest discrimination and injustice, and provoking retaliation.

The revenue thus paid by way of license fee should be in lieu of all charges for supervision and all taxes except those locally levied on real estate.